Commissioner Of Income Tax-Ii vs M/S Sikh Education Society on 3 August, 2009

I.T.A. No. 838 of 2008 (O&M)                                     (1)

 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

                                      I.T.A. No. 838 of 2008 (O&M)

                                      DATE OF DECISION: 3.8.2009


Commissioner of Income Tax-II, Chandigarh                 ..........Appellant

                         Versus

M/s Sikh Education Society, Sector 26, Chandigarh         ..........Respondent



CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL
        HON'BLE MRS. JUSTICE DAYA CHAUDHARY



Present:-   Ms. Urvashi Dhugga, Advocate
            for the appellant.

            Mr. Rajiv Sharma, Advocate
            for the respondent.


                         ****


ADARSH KUMAR GOEL, J. (Oral)

1. The revenue has preferred this appeal under Section 260A of

the Income Tax Act, 1961 (for short, “the Act”) against the order of Income

Tax Appellate Tribunal, Chandigarh Bench-B dated 30.6.2008 passed in

ITA No. 315/Chandi/2008 for the assessment year 2005-06, proposing to

raise following substantial question of law:-

“Whether on the facts and circumstances of the case

and in law, the Hon’ble ITAT was justified in holding, that

the mere fact that assessee was a Society/other

institution and not a trust would not disentitle it from the

exemption under section 11/12 of the Act, without

appreciating the fact that the assessee was Registered

under Societies Act, 1860 and not under Indian Trust

Act, 1882 as such does not qualify for exemption u/s 11
I.T.A. No. 838 of 2008 (O&M) (2)

(1) (a) of the Income Tax Act, on the income which is

derived from the property not held under a trust.”

2. The assessee is running a educational institution and claimed

exemption under Section 11 (2) of the Act in respect of income derived

from interest of saving bank account and Fixed Deposit Receipts. The

Assessing Officer disallowed the said exemption on the ground that the

assessee was only a society and not a trust. This view was reversed by

the CIT(A) as well as by the Tribunal.

3. Learned counsel for the assessee relies upon order of this

Court dated 15.12.2008 passed in ITA No. 609 of 2007 (The Commissioner

of Income Tax, Panchkula Vs. M/s Haryana C.M. Relief Fund, Chandigarh),

wherein, it was held that in view of the explanation to Section 13 (1) of the

Act, the term ‘Trust’, includes any other legal obligation, once the property

was for charitable purpose. The said order was followed in the case of the

assessee on 16.3.2009 in ITA No. 728 of 2008.

4. Learned counsel for the appellant submitted that claim of the

assessee being under Section 10 (23C), exemption under Section 11 of the

Act could not be allowed. This is not the point raised or considered in the

order of the Tribunal or even in the appeal filed in this Court. Thus, this

question cannot be allowed to be raised.

5. No substantial question of law arises. The appeal is

dismissed.

                                            (ADARSH KUMAR GOEL)
                                                  JUDGE



August 03, 2009                             (DAYA CHAUDHARY)
pooja                                            JUDGE

Note:-Whether this case is to be referred to the Reporter …….Yes/No
I.T.A. No. 838 of 2008 (O&M) (3)